1. How will we differentiate between private and Govt. upstream companies and which one is better and why?
In India, retail fuel prices are regulated by Govt. If the crude oil prices are high, Oil Marketing Companies (OMCs) bear under recoveries on sale of fuel at lower prices. As per Govt., public upstream companies has to bear a part of subsidies losses of OMCs, whereas private companies like RIL, Cairn don?t...
Posted by
kamal on Apr 20th, 2010 in
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Bank Sector
Rating: Positive
In 3Q 2010, our coverage universe reported positive growth in Net interest income (NII) with decent growth in advances except ICICI Bank. Net interest margins has grown up on back of falling cost of deposit as banks have bolstered their CASA base. We continue to have bullish view on sector since IIP (Index of Industrial production) can surprise on upside which will ignite private capital...
The Union Budget FY10-11 is expected to come on 26 Feb’10 and will be the next major trigger for the market.
Finance Minister is expected to provide guidelines for the introduction of the direct and indirect tax reforms i.e. the direct tax code (DTC) and the Goods & Services Tax (GST).
FM may increase excise duties to decrease the fiscal stimulus measures and may raise the service tax also from 10%. We...
Upstream Co: Positive
Downstream Co: Neutral
Gas Co: Positive
Q3 FY10 review: almost in line with our expectations
The Q3 FY10 results were broadly in line with our expectations. The upstream companies posted good profits during the quarter on account of higher average crude oil prices on YoY basis and higher GRMs. Commencement of Rajasthan field (Cairn India) and increased production in KG-D6 were the key...
Currently, I am positive on Oil and Gas sector. Keeping in mind the common man’ interest, we anticipate the partial implementation of Mr. Kirit Parikh ’s recommendations, which could lead to a re-rating of the entire sector. We expect a midway approach to these recommendations would improve the earnings visibility of OMCs and could lead the OMCs P/E to 17-19x from current 13.25x.
Considering the growing...